Generally, a higher excess is considered higher risk. But it might save you money right now. If you’re an infrequent driver and mostly have your car safely stored then the level of risk may be low and the savings could be great.
What does the excess mean on car insurance?
A car insurance excess is the amount that you have to pay yourself if you make a claim. There are two types of excess: Compulsory excess – this is a fixed excess, set by us, which you’ll have to pay if you make a claim. The amount varies depending on your circumstances.
Do I pay excess if it’s my fault?
If the other driver has admitted fault and has already told their insurer, your excess might be waived. But usually you’ll have to pay it – so make sure you can afford it. When your insurer is certain you’re not at fault, you’ll get it back.
Will I get my excess back?
Paying excess for a car accident that isn’t your fault
If your insurance company have dealt with the claim, they should claim the excess back for you. If you have a no fault accident, a credit hire company can also make a claim on your behalf.
Is it better to have high or low excess? – Related Questions
What should I set my voluntary excess at?
The voluntary excess amount that you commit to will mostly be determined by the disposable income you have access to if the need for a claim arises. It should be set at an amount that you can comfortably manage to pay whilst taking the inclusiveness of compulsory excess into consideration.
What happens if damage is less than excess?
What if repair costs are lower than expected? Sometimes the total claim cost can end up costing less than the excess charged. In these cases, you’ll be refunded the difference.
What does an excess of 500 mean?
Put simply, the excess is the sum of money you’re obliged to pay should you make a claim on your car’s insurance policy. You are expected to pay if you are deemed to be at fault for the incident that caused the damage.
Why is my compulsory excess so high?
If you’re a young, inexperienced driver, your compulsory excess is therefore likely to be higher than someone who’s been driving for a while. The compulsory excess on your policy is also likely to be higher if you drive a valuable or high-performance vehicle such as a sports car.
Is voluntary excess worth it?
Why would I choose to have a voluntary excess? The amount of voluntary excess you have can significantly impact the cost of your car insurance premium. By choosing a higher voluntary excess, you will reduce your premium; but you will also have to pay more if you do make a claim.
How does excess work?
Insurance excess is a pre-agreed amount of money that you need to pay to your insurance provider in the event of a claim, such as a car accident or a flood at home. In many cases, you’ll be asked to pay the excess immediately so that the claim process can begin.
What’s the difference between voluntary and compulsory excess?
What’s the difference between voluntary and compulsory excess? There are two main types of car insurance excess: Compulsory excess – this is set by your insurance provider and can’t be changed. Voluntary excess – this is how much you choose to pay on top of the compulsory excess.
Who pays compulsory excess?
The overall excess you’ll pay is made up of two parts – a compulsory excess set by the insurer and a voluntary excess that you set when you take out your policy. You will only need to pay this excess to repair damage done to your vehicle in an accident that is fully or partially your fault.
How many years of no claims discount do you have?
A no claim discount is a reduction in the cost of your car insurance if you don’t make a claim. You usually earn one year of no claim discount for every claim-free year of motoring. So, if you don’t make a claim for five years, you’ll have five years of no claim discount applied to the basic cost of your car insurance.
Do I lose my no claims if someone hits me?
Non-fault accidents
If they do, it will affect your no-claims bonus until your insurer can work out who’s liable. If you decide to claim for any damage, it will affect your no-claims bonus until your insurer can recover the costs from the other driver’s insurer.
Is 9 years no claims the maximum?
In reality, most insurance providers cap the maximum no-claims discount at around 5 years. Some insurance companies do go beyond this – you might find an insurer willing to give you a discount on 8 or 9 years’ worth of no-claims.
Do I lose my no claims if I don’t drive for a year?
If you’ve stopped driving for a while or you no longer own your car, you should still be able to use your no-claims bonus – it will last for two years after you stop driving. After this, it will expire, and you have to start building it again.
Can 2 people insure the same car?
You and your partner can both take out separate policies for the same car. Car insurance policies are for both the vehicle and the driver, so it’s perfectly fine, legal and common for two people to be insured on the same vehicle under separate policies. There are a few reasons why you might consider doing this.
How much is a no claims bonus worth?
Maximum No Claims Discount
The amount of discount earned increases with each year of claim-free driving. So after one year you might get 30%, with the percentage increasing each year until you get 70% NCD after five years. Most firms offer a maximum NCD of 70%, although some offer 75% or 80%.